When are black markets likely to arise?
A. when the government removes a price floor
B. when there is a surplus of a good
C. when the quantity supplied of a good exceeds the quantity demanded
D. when the government enforces a price ceiling
Answer: D
You might also like to view...
Crowding out occurs when the federal government:
a. raises taxes to finance a budget deficit. b. refinances maturing U.S. Treasury bonds. c. borrows by selling bonds to finance a deficit. d. uses a budget surplus to pay off part of the national debt.
Figure 10-5
In Figure 10-5, which graph best illustrates the situation of an economy reacting to a recessionary gap by reducing resource cost levels?
a.
(1)
b.
(2)
c.
(3)
d.
(4)
A derivative instrument:
A. is a low-risk financial instrument used by highly risk-averse savers. B. gets its value and payoff from the performance of the underlying instrument. C. should be purchased prior to purchasing the underlying security. D. comes into existence after the underlying instrument is in default.
We ADD to the GDP when goods produced abroad are sold in the United States.
Answer the following statement true (T) or false (F)